Germany Could be a Drag on the S&P 500 Index

There are a lot of things out there which could drag our markets lower even as the S&P 500 tests its important 1950 level. There is one negative that should be of particular interest and that is the relative performance of the Germany iShares ETF (EWG). It has underperformed the S&P index by 12% over the last 52 weeks, and year-to-date by 5.25%. Last week it failed to break above its high earlier this month and moved lower as our index closed higher.